Preferential issue disclosure obligations require detailed explanatory disclosures, auditor certification and independent valuation where consideration is non cash. Regulation 73 requires that the explanatory statement for a shareholders' meeting concerning a preferential issue disclose the objects of the issue, promoter/director subscription proposals, pre- and post-issue shareholding pattern, completion timeframe, identities of ultimate beneficial owners and any change in control, and undertakings to re-compute price and maintain lock-in until any recomputed price shortfall is paid; it also mandates a statutory auditor's certificate of compliance and independent valuation for non-cash consideration to promoters or related entities, with the special resolution specifying the relevant date for pricing convertible securities.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Preferential issue disclosure obligations require detailed explanatory disclosures, auditor certification and independent valuation where consideration is non cash.
Regulation 73 requires that the explanatory statement for a shareholders' meeting concerning a preferential issue disclose the objects of the issue, promoter/director subscription proposals, pre- and post-issue shareholding pattern, completion timeframe, identities of ultimate beneficial owners and any change in control, and undertakings to re-compute price and maintain lock-in until any recomputed price shortfall is paid; it also mandates a statutory auditor's certificate of compliance and independent valuation for non-cash consideration to promoters or related entities, with the special resolution specifying the relevant date for pricing convertible securities.
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